CO537-(1262-1649) — Page 168

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THE NATIONAL ARCHIVES

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restrictions. Further information is given in the enclosed Terms and Conditions of supply of National Archives' leaflet. Please note that this copy is supplied subject to the National Archives' terms and conditions and that your use of it may be subject to copyright

ID

00132

Colonial Office, Dover House,

129

22

Whitehall, S.W.1.

6th March, 1946.

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2

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Ref.:

CO 537/1369

THE NATIONAL ARCHIVES

restrictions. Further information is given in the enclosed Terms and Conditions of supply of National Archives' leaflet.

Please note that this copy is supplied subject to the National Archives' terms and conditions and that your use of it may be subject to copyright

15117/2/46.

PRIVATE &

CONFIDENTIAL.

My dear Young,

21

Thank you for your letter of 4th March about Hong Kong duress notes. I came to the conclusion that on balance it would be best not to complicate things by telegraphing further to MacDougall about the draft announcement.

I admit the justice of your comment, but MacDougall had previously asked that we should avoid telegraphing on this subject if at all possible, and I find it very difficult to devise any sufficiently guarded form of words which would get the point over. It seemed to me, however, that the phrase in question need not be taken to imply that it is the Bank which is determining what is legal tender, since it is qualified by the earlier reference to the with- drawal of the proclamation which deprived the notes of legal tender status. I had in fact originally read it as meaning that, since the notes are now legal tender, the Bank will accept and honour them, rather than as meaning that it is the Bank's acceptance which constitutes the legal tender.

P.S.

Yours sincerely,

(Sgd) S. Caine,

Apart from the above, I have just heard that MacDougall is on his way home, ao we shall probably see him before action is taken.

Norman Young, Esq., C.M.G., M.C.,

Treasury.

(Itlld.) S.C.